Forbes Growth Investor recommends OmniVision Technologies as an investment because of its CMOS CameraChip for digital cameras and, especially, camera phones.
The article in Forbes says the company has no debt, has almost $200 million in cash and provides a significant competitive advantage to clients because the CameraChip's integrated design "enables clients to build smaller and more portable products that require less power than multichip counterparts."
The article notes that the company's claim to fame is basically it's single CameraChip, but "the significance of OmniVision's one primary product should not be dismissed. The CameraChip is an integral component in mobile camera phones, which are among the most popular new electronic devices.
"Indeed, OmniVision's explosive growth in recent periods is primarily due to the rising demand for camera phones."
Competitive pressures
OmniVision has experienced impressive growth but it's a relatively small company with a "one-trick pony" and could be in trouble if a larger competior, such as National Semiconductor, Sharp or Motorola is able to offer a better product, Forbes says.
So far, however, OmniVision's expertise and "low-cost proprietary CMOS production method" gives it an edge, the article notes.
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